Homes crisis ‘is crippling town'

READING'S housing shortage is a crisis "worse than any other facing the town".

Spiralling property prices, which incomes cannot keep pace with and a lack of space have combined to create an emergency more pressing than crime, Reading Borough Council's economic head Councillor Lawrence Silverman has told the Evening Post.

And he predicted the problem, which is already hitting recruitment in vital jobs and services, will soon force even those in well-paid jobs from the town.

His comments come after figures compiled for the council showed the average price of a flat in Reading went up 30 per cent in two years, while average incomes only rose by 20 per cent.

The figures are among Quality of Life indicators drawn up by the council to find out how people feel about the place they live, and will be discussed at the corporate, community and external affairs panel tonight.

Dr Silverman, lead councillor for economic and external affairs at Reading Borough Council, said: "We are facing a housing crisis.

"It is the most serious thing that we have to deal with - more serious than crime.

"Unlike crime, which is reducing, the gap between house prices and wages is widening.

"Even people with quite well paid jobs can't afford to live here. The council already experiences problems because it is so difficult to recruit key workers."

"The private sector, police and the health service all suffer similar difficulties in attracting staff from outside the Reading area.

"Key worker and affordable housing initiatives can help, but it is reaching the point where no-one can afford live here," he added.

The Quality of Life figures show the average flat cost £95,522 in March 2000 but would have been priced at £138,284 in March 2002.

Salaries did not keep pace, with the average male income reaching £33,672 and the female equivalent £24,193 by 2002 compared with £27,653 and £20,094 respectively for men and women in

March 2000.

Those salary increases were just 21.7 per cent for men and 20.39 per cent for women over the survey period.

Dr Silverman blames an irrational housing market in which people are living in houses that, if they had to buy now, they could not afford

and the fact that many homeowners are using their houses as capital assets rather than simply regarding them as a roof over their heads.

They bought and sold homes to make capital gains, he states, which were often only realised when they died.

This is coupled with a shortage of houses caused by a number of factors: L Nimbyism (the Not In My Backyard attitude that sees almost all house building proposals fought by local people)

The slow planning process, which causes delays between land becoming available and homes being built.

The reluctance of builders to construct anything but large expensive houses that people cannot afford to buy.

Builders and landowners hoarding land in the hope of getting higher prices.

The South East England Regional Assembly, which is made up of representatives, including Dr Silverman, from local authorities in the region, is currently working to identify land for housing across the area to meet the need for more homes.